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Superglossary - Finance Category: Economy and Finance > Finance Date & country: 16/12/2013, USA Words: 5410

Industrial Revenue Bond (IRB)
A statistic determined by the Federal Reserve Board focusing on the total output of all U.S. factori

Industrials
A bond issued by local government agencies on behalf of corporations.

Industry
General term used in the financial markets to refer to companies manufacturing, producing, or distri

Infant Industry Argument
The category describing a company's primary business activity. This category is usually determined b

Inflation
Argument that industries in the developing and emerging sectors of the economy need protection again

Inflation Accounting
The rate at which the general level of prices for goods and services is rising.

Inflation Hedge
Accounting practices allowing for the effects of inflation.

Inflation Risk
Investments designed to hedge against inflation and the loss of purchasing power associated with it.

Inflation Uncertainty
Also called purchasing power risk, the risk that changes in the real return the investor will realiz

Inflation-Escalator Clause
The fact that future inflation rates are not known. It is a possible contributing factor to the make

Inflation-Indexed Securities
A clause in a contract providing for increases or decreases in inflation depending on fluctuations i

Inflexible Expenses
Securities such as bonds or notes that guarantee a return higher than the rate of inflation if the s

Information Asymmetry
Expenses that cannot be adjusted or eliminated such as car payments or rental payments. Antithesis o

Information Coefficient (IC)
Condition that information is known to some, but not all, participants.

Information Content Effect
The correlation between predicted and actual stock returns, sometimes used to measure the contributi

Information Costs
The rise in the stock price following a dividend signal, or publication of some other related news.

Information Services
Transactions costs that include the assessment of the investment merits of a financial asset. Relate

Information-Motivated Trades
Trades that are the result of either a reallocation of wealth or an implementation of an investment

Informational Efficiency
Organizations that furnish investment and other types of information, such as information that helps

Informationless Trades
The speed and accuracy with which prices reflect new information.

Infrastructure
Trades in which an investor believes he or she possesses pertinent information not currently reflect

Ingot
A country's fundamental system of transportation, communications, and other aspects of its physical

Inheritance Tax Return
A bar of metal such as the type that the Federal Reserve System uses to store gold reserves.

Initial Filing
The time it takes the receiver of a check to process a payment and deposit it in a bank for collecti

Initial Margin
Has various meanings. It could refer to a form that is filed with the Securities and Exchange Commis

Initial Margin Requirement
(1) Amount of money deposited by both buyers and sellers of futures contracts to ensure performance

Initial Public Offering (IPO)
When buying securities on margin, the proportion of the total market value of the securities that th

Initiate Coverage
A company's first sale of stock to the public. Securities offered in an IPO are often, but not alway

Input-Output Tables
Used in the context of general equities. (1) An order or market in a specific security within the in

Inquiry
Tables that indicate how much each industry requires of the production of each other industry in ord

Inside Market
Used in the context of general equities. In-line expression of interest in a particular stock, usual

Insider Information
Refers to over-the-counter trading. Best (highest) bid and best (lowest) offer, often used in the O.

Insider Trading
Material information about a company that has not yet been made public. It is illegal for holders of

Insiders
Act imposing civil and criminal penalties for insider trading violations.

Insolvency Risk
These are directors and senior officers of a corporation-in effect, those who have access to inside

Insolvent
The risk that a firm will be unable to satisfy its debts. Also known as bankruptcy risk.

Installment Sale
A firm that is unable to pay debts (its liabilities exceed its assets).

Institutional Broker
Computerized subscriber service that serves as a vehicle for the fourth market. 'Instinet' is regist

Institutional Investors
Organizations that invest, including insurance companies, depository institutions, pension funds, in

Institutional Investors
Service that assembles analysts' estimates of future earnings for thousands of publicly traded compa

Institutionalization
The number of financial institutions, e.g. investment companies, fire, casualty, and life insurance

Instrumentality
The gradual domination of financial markets by institutional investors, as opposed to individual inv

Instruments
Notes issued by a federal agency whose obligations are guaranteed by the full-faith-and-credit of th

Insurable Interest
Process through which debt is removed from the balance sheet but not cancelled.

Insurance
An insurance term referring to the relationship between a policy's insured person or property and th

Insurance Agent
Guarding against property loss or damage making payments in the form of premiums to an insurance com

Insurance Broker
The insurance company representative and adviser who sells insurance policies.

Insurance Claim
A broker, independent of any insurance company, who represents the interests of the buyer in searchi

Insurance Dividend
A claim for reimbursement from the insurance company when the insured has suffered a loss that is co

Insurance Policy
Money paid annually to policyholders participating in cash value life insurance policies.

Insurance Premium
A contract detailing an insurance policy and outlining what risks are insured, what insurance premiu

Insurance Principle
Payments calculated by the insurance company based on risk factors that must be made by the insured

Insurance Settlement
The law of averages. The average outcome for many independent trials of an experiment will approach

Insured
The payment of proceeds by an insurance company to the insured to settle an insurance claim within t

Insured Account
The property or persons covered by an insurance policy.

Insured Bond
A bank or financial account that is insured for the benefit of the depositor, protecting against los

Insured Plans
A municipal bond backed both by the credit of the municipal issuer and by commercial insurance polic

Intangible Asset
Defined benefit pension plans that are guaranteed by life insurance products. Related

Intangible Asset
A long-term asset that represents a financial, legal, or accounting concept rather than a physical i

Integer Programming
A legal claim to some future benefit, typically a claim to future cash. Goodwill, intellectual prope

Inter Vivos Trust
Variant of linear programming in which the solution values must be integers.

Intercommodity Spread
A trust created between living persons. Antithesis of a testamentary trust.

Intercompany Loan
In the commodities market, a spread consisting of a long position and a short position in different

Intercompany Transaction
Loan made by one unit of a corporation to another unit of the same corporation.

Interdelivery Spread
Transaction carried out between two units of the same corporation.

Interest
Used in futures or options market to refer the purchase of one month of a contract and selling anoth

Interest Basis
The price paid for borrowing money. It is expressed as a percentage rate over a period of time and r

Interest Coverage Ratio
The interest rate, such as prime or LIBOR, that is used as a reference point for quoting borrowing r

Interest Coverage Test
The ratio of earnings before interest and taxes to annual interest expense. This ratio measures a fi

Interest Deduction
A debt limitation that prohibits the issuance of additional long-term debt if the issuer's interest

Interest Equalization Tax
An interest expense, such as interest on a margin account, that is allowed as a deduction for tax pu

Interest Expense
Tax on foreign investment by residents of the U.S. which was abolished in 1974.

Interest Expense
Money paid by a business in exchange for the use of capital for a specified time period. On the inco

Interest Income
Interest expense is the money the corporation or individual pays out in interest on loans.

Interest On Interest
Money received by a business in exchange for the use of capital for a specified time period. On the

Interest Payments
Interest earned on reinvestment of each interest payment on money invested. See

Interest Rate
Contractual debt payments based on the coupon rate of interest and the principal amount.

Interest Rate
The monthly effective interest rate. For example, the periodic rate on a credit card with an 18% ann

Interest Rate Agreement
The cost of borrowing money, expressed as a percentage per period of time, usually one year.

Interest Rate Cap
An agreement whereby one party, for an up-front premium, agrees to compensate the other at specific

Interest Rate Floor
An interest rate agreement in which payments are made when the reference rate exceeds the strike rat

Interest Rate Futures Contract
An interest rate agreement in which payments are made when the reference rate falls below the strike

Interest Rate On Debt
A futures contract based on an interbank deposit rate or an underlying debt security. The value of t

Interest Rate Parity Theorem
Expression that the interest rate differential between two countries is equal to the difference betw

Interest Rate Risk
The chance that a security's value will change due to a change in interest rates. For example, a bon

Interest Rate Swap
A binding agreement between counterparties to exchange periodic interest payments on some predetermi

Interest Subsidy
The value of a firm's deduction of the interest payments on its debt from its earnings before calcul

Interest Tax Shield
The reduction in income taxes that results from the tax-deductibility of interest payments.

Interest-Only Loan
A loan in which payment of principal is deferred and interest payments are the only current obligati

Interest-Only Strip (IO)
A security based solely on the interest payments from a pool of mortgages, Treasury bonds, or other

Interest-Sensitive Insurance Policy
A cash value life insurance policy whose insurance dividend rates vary with respect to inflation, en

Interest-Sensitive Stock
Stocks whose earnings are dependent upon and change with the interest rate, e.g., bank stocks.

Interim Dividend
The declaration and payment of a dividend prior to annual earnings determination.

Interim Financing
A short-term loan made to a company on the condition that a takeout will follow with long-term or in

Interim Statement
A financial statement that reflects only a limited period of a company's financial statement, not th

Interlocking Directorate
Describes cross-memberships of directors on each other's company Board of Directors.

Intermarket Sector Spread
The spread between the interest rate offered in two sectors of the bond market for issues of the sam

Intermarket Spread Swaps
An exchange of one bond for another based on the manager's projection of a realignment of spreads be

Intermarket Trading System (ITS)
Electronic communications network linking the trading floors of seven registered exchanges to permit

Intermediate-Term
Typically one-ten years.